20151027
Short 1 TF 1149.1, -0.6
Short 1 TF 1151.4, 1151.3, +1.5, +0.7
Long 2 NQ 4623.0, 4622.75, -2.0, +2.0
Long 1 NQ 4622.5, -2.0
Long 2 NQ 4620.25, 4620.75, -2.0, -2.0
Long 1 TF 1150.0, -1.4
Long 2 TF 1142.9, 1142.1, +1.0, +2.2
Short 1 TF 1147.8, +1.1
Total NQ -6.0
Total TF +4.5
Divergences can be an important tool. That is to day, a little divergence is a good thing and a handy tool. It can help ID an intraday swing, and help contribute a loan from one contract's signals to another contract's entry model. But deep disparity, like we're seeing in intraday action between the midcaps of the Russell 2k contract and the larger cap ES and YM, or the glamour techs of the NQ can be far more challenging than helpful. Today, the TF was so disparate it was like trading an oil contract against the stock indices, while expecting a correlation that seemed uncharacteristically unwarranted. We trade what's in front of us. The market is never supports to be anything other than what it is and what it does. The Trader must be open to all conditions, but also able to shut it down and limit further risks when the methods of the Analyst fail and the Accountant deems the losses too great.
